Massmart: Saccawu taking a softer line

Initially, Saccawu demanded that Massmart's R100m supplier fund be increased to R500m, but later conceded the figure was not based on anything substantial.

Paul Kennedy, representing the union, said although prices and consumer welfare were not irrelevant, one needed to assess the whole spectrum, from consumers to retailers and producers. "We need to go beyond the price benefit issue, " he said. "Unemployment is one of the most critical challenges this developmental state is facing. Procurement has crucial significance in this matter and should have enjoyed more attention at the (Competition) Tribunal."

Judge Dennis Davis said it was not the duty of the competition authorities to protect certain parts of the economy. "We cannot protect you from the gale-force blast of globalisation," he said. "The real issue here is how do we get SA's manufacturing set to deliver more efficiently? Protectionism doesn't work." Judge Davis also raised concern about unions' demands to impose a closed-shop agency agreement and centralised group bargaining at Massmart, saying the union could seek redress through the Labour Relations Act.

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